The Dilemma and Breakthrough of Privacy Coins
Against the backdrop of tightening regulations, privacy coins such as Monero and Zcash face severe challenges. Multiple exchanges have delisted privacy coins, and some countries classify them as illegal assets. However, market demand still exists, and a new generation of privacy solutions has emerged: zk-rollup projects like Aztec have achieved compliant privacy transactions on Ethereum; an improved version of Tornado Cash attempts to find a balance between privacy and regulation. The industry is exploring compromise solutions such as 'selective disclosure', striving to protect user privacy while meeting anti-money laundering requirements. This game of privacy versus regulation will profoundly impact the future development direction of cryptocurrencies.